C23nZ 


; 


UNIVERSITY  OF  N.C.  AT  CHAPEL  HILL 


00042095703 


BILL  TO  BE  ENTITLED  AN  ACT  TO 
AUTHORIZE  A  SALE  ...  IN 
THE  CAPE  FEAR  AND  YADKIN 
VALLEY  RAILBOAD  COMPANY 


/«-&"/ 


,3// 


A  BILL  TO  BE  ENTITLED  AN  ACT  TO  AUTHORIZE 
A  SALE  AND  TRANSFER  OF  THE  STOCK  OWNED 
AND  HELD  BY  THE  STATE  IN  THE  CAPE  FEAR 
&  YADKIN  VALLEY  RAILROAD  COMPANY. 

The  General  Assembly  of  North  Carolina  do  enact: 

Suction  1.  That  it  shall  be  lawful  for,  and  shall  be  the 

2  duty  of,  the  Commissioners  hereinafter  named   to  sell 

3  and   transfer  on  the  books  of  the  Cape   Fear  &  Yadkin 

4  Valley  Railroad  Company  the  fifty-five  hundred  (5500) 

5  shares  owned  and  held  in  said  railroad  company  by  the 

6  State  of  North   Carolina  to  the  South   Atlantic  &  Ohio 

7  Railway   Construction  and  Operating  Company,  incor- 

8  poiated   by  an  Act  ratified  on  the  4th  day  of  February, 

9  18.81,  upon  the  terms  and  conditions  following,  that  is 

10  to  ^ay :  That  on  or  before  the   1st  day  of  July,  1881,  the 

11  said   purchasing  company  shall   pay  into  the  Treasury 

12  of  the  State  the  sum  of  fifty-five  thousand  dollars,  in  law- 

13  ful  money  of  the  United  States,  for  which  sum  when  so 

14  paid   the   Treasurer   shall    execute  and   deliver  to  said 

15  purchasing  company  a  receipt,  provided   said   company 

16  shall  at  the  same  time  deliver  to  the  Treasurer  an  obli- 
17gation  in  writing,  signed   by  its  President  and  attested 

18  by  its  Secretary,  with  the  seal  of  the  company,  agreeing 

19  in  substance  and  effect  following,  to- wit :  That  the  stock 

20  for  which   certificates  shall   be  issued  to  the  South  At- 

21  lantic  and  Ohio  Railway  Construction  Company  shall  be 

22  delivered  to  the  State  Treasurer,  to  be  by  him  safely  held 

23  and  kept  in  trust,  as  security  that  the  said   purchasing 
-24  company  will  perform   the  following  conditions  upon 

25  which  said  sale  is  made  to  them  ;  that  they  will  bona  fide 

26  construct  and  put  in  actual  operation,  before  the  first  day 

27  of  July,  1883,  the  Western  portion  of  said  road  to  a  con- 

28  nection  with  the  line  said  purchasing  company  propose 


29  to  construct  under  their  own  charter  from  the  Tennessee 

30  and  North  Carolina  State  line  to  some  convenient  point 

31  at  the  Eastern   base  of  the  Blue  Ridge  mountain  ;  and 

32  that  within  the  same  period  they  will  construct  an  Eas 

33  tern  extension  and  put  it  in  operation  from  Fayette ville 

34  to  some  point  to  be  selected   by  them  on  the  shore  of 

35  Wilmington   harbor:  and   further,  that  they  will  coif- 

36  struct  and  put  in  operation  a  branch  from  the  main  line 

37  somewhere  West  of  Greensboro  into  the  county  of  Surry 

38  and  as  near  to  the  town  of  Mount  Airy  as  may  be  prac- 

39  ticable  for  a  railway  route  and  station,  before  the  1st  day 

40  of  July,  1884:  that  if  said   South  Atlantic*  Ohio  rail- 

41  way  Construction  and  Operating  Company  shall  fail  to 

42  fulfil  and  perform  any  of  the  conditions  aforesaid  within 

43  the  time  aforesaid,  then  and  in  that  event  their  title  to 

44  said  fifty-five  hundred  shares  of  stock  so  purchased  from 

45  the  State  shall  cease  and  determine,  and   it  shall  be  the 

46  duty  of  the  Treasurer  of  the  State  to  notify  the  Commis- 

47  sionersof  such  default  and  failure,  and  deliver  to  them  the 

48  certificates  for  all  of  said  stock,  and  it  shall  be  their  duty, 

49  and  they  are  hereby  authorized  and  directed  to  transfer 

50  said  stock  on  the  books  of  the  Cape  Fear  &  Yadkin  Val- 

51  ley  Railroad  Company  back  to  the  State  of  North  Caro- 

52  lina,  whose  title  thereto  shall    never  afterwards  be  ques- 

53  tioned  before  any   Court  or   tribunal,  State  or  Federal: 

54  and  the  fifty  five  thousand   dollars  of  purchase  money 

55  paid  for  said  stock  shall  be  held  forever  by  the  State  as 

56  agreed  and  liquidated  damages  to  be  paid   by  the  pur- 

57  chasing  company  for  its  default  in  thefulfiimentand  ner- 

58  formance  of  its  agreement  with   the  State  to  complete 

59  and  equip  said  road  as  hereinbefore  provided  for.     But 

60  if  on  the  1st  day  of  July,  18S4,  the  said  purchasing  com- 

61  pany  shall  in  fact  have  complied  with  all  the  conditions 

62  aforesaid,  and  be  then  in  fact  running  trains  over  the 

63  Eastern   and  Western   extensions  from   the  base  of  the 

64  Blue  Ridge  to  Wilmington  Harbor,  and   on  the  branch 


3 


65  to  or  near  Mt.  Airy,  it  shall  be  the  duty  of  the  Treasurer 

66  to  deliver  the  whole  of  said  stock  to  said  Company  with- 

67  out  further  conditions  of  any  kind,  and   after  such  de- 

68  livery,  if  a   majority  of  i he  stockholders   so   decide  in 

69  general  meeting  of  the  Cape  Fear  &  Yadkin  Valley  Rail- 

70  road  Company,  it  shall   be  lawful  to  merge  and  consoli- 

71  date  said  company  into  the  South  Atlantic  &  Ohio  Rail- 

72  roan  Company  on  such  terms' and  conditions  as  may  he 

73  agreed  upon  between  the  two  companies. 
Sec.  2.  The  vote  to  which  the  purchasers  of  said  State 

2  stock  shall  be  entitled  in  said  company,  after  they  com- 

3  mence  the  work   of  construction  as  aforesaid,  shall  be 

4  the  same  that  the  State  is  entitled  to  under  the  present 

5  charter  of  the  Cape  Fear  and  Yadkin  Valley  Railroad 

6  Company  in  all  meetings  that  may  be  held.     But  after 

7  the  final  delivery  by  the  Treasurer  of  said  stock,  it  shall 
S  stand  upon  the  same  footing  as  all  other  private  stock. 

Sec.  3   The  gauge  of  said  railroad  shall  be  at  all  times 

2  entirely  subject  to  the  control  of  a  stock-holders'  meet- 

3  ingof  the  Cape  Fear  &  Yadkin  Valley  Railroad  Com- 

4  pany  ;  and  in  like  manner  all  questions  of  connections, 

5  running  arrangements  and  tariff  rates,  with  connecting 

6  roads,  shall  be  under  the  control  of  the  company,  pro- 

7  vided  that  in  the  establishment  of  rates  no  discrimina- 

8  tions    shall    be    made    on   North   Carolina  freights  or 

9  travel  against  any  point  of  traffic  or  travel  in  the  State 
10  and  in  favor  of  places  beyond  the  State. 

Sec.  4.  To  afford   the  said  purchasing  company   all 

2  the  facilities  for  the  fulfillment  of  their  obligations,  they 

3  shall  have  the  right  to  subscribe  for  stock  in  the  Cape 

4  Fear  &  Yadkin  Valley  Railroad  Company  on  the  same 

5  terms  as  other  private  stockholders  for  such  amount  as 

6  they  may  deem  sufficient  to  complete  their  undertaking. 
~.      7  And  the  State  agrees  hot  to  interfere  with  existing  ar- 

8  rangements  respecting  convict  labor  on  said  road  ;  and 

9  further,  that  as  additional  convicts  may  become  availa- 


T) 


10  ble,  either  by  new  commitments  to  the  penitentiary  or 

11  the  return  of  convicts  by  other  companies   now  entitled 

12  to  or  working  them,  the  State  will  hire  them  to  said  com 

13  pany  on  the  usual  terms  in  such  cases,  the  said  company 
11  agreeing  to  pay  the  earnings  of  the  said  convicts  in 
15  money  monthly  as  the  ^ame  falls  due. 

Sec.  5.  If  the  South  Atlantic  and  Ohio  Railway  Con- 

2  struction  and  Operating  Company  shall  fail  or  refuse  to 

3  complete  the  purchase  pf  the  State's  interest  aforesaid 

4  on  or   before  the  1st  day  of  July,  1881,  in  the  manner 

5  and  form   hereinbefore  provided,  then  it  shall  be  lawful 

6  for  said  Commissioners  to  sell  said  stock,  at  not  less  than 

7  the  price  herein    mentioned  to  an}'  othe1,  company,  or 

8  private  parties  who  will  give  adequate  security  to  com- 

9  plete  the  road  east  and  west,  and  the  branch  to  Surry  as 

10  hereinbefore  set  forth,  within   a   period    not   exceeding 

11  three  years  from  the  date  of  sale  to  them. 

Sec.  6.  The  following  named  'gentlemen   are   hereby 

2  created  a  Board  of  Commissioners  to  cany  out  the  pro- 

3  visions  of  this  act,  and  they,  or  so  many  of  them  as  may 

4  accept,  shall  be  invested  with  full  powers  to  do  whatever 

5  is  necessary  to  be  done  in  the  premises  to  give  full  force 

6  and  effect  to  this  act,  to-wit: 


Sec.  7.  This  act  shall  be  in  force  from  its  passage. 


